NGOs in the social sector mostly get funds under Corporate Social Responsibility (CSR), but now these funds have reduced considerably. Funds under this are being diverted to PM Cares Fund. Because of this they are facing financial crisis.
Social activist and Niti Aayog member Amod Kanth says that under the CSR, Rs 11,800 crore was spent nationwide in 2018-19, but from April 2020, Rs 10,000 crore of the CSR donation was poured into the PM CARES fund.
“A PSU (public sector unit) gave us 2.5 lakh rupees first, but when we asked for the second installment of 2.5 lakh rupees, they said that we have given that money to the PM CARES fund. This is an indication of how the money is being sent to PM CARES.”
Amod Kanth, Founder, Endeavor and Coordinator, NITI Aayog
Vishwajit Ghoshal, director of Prayas NGO, says, “Suddenly we realize that most of the money lenders are under pressure, due to PM CARES funds or commitment to the country, their response or support for us has gone up to 50% ”
There has been a huge cut in the money we get from the CSR fund. The (financial) assistance that is coming to us or going to other voluntary organizations is decreasing considerably. A big reason for this is the PM CARES fund. We have been told that more than 10,000 crore PM have gone to CARES.
Amod Kanth – Founder, Endeavor and Coordinator, NITI Aayog
Government launched PM CARES fund for COVID-19 relief work. Amod Kantha says that suddenly the government makes a program, like PM CARES and within that program you divert funds. this is wrong. The entire spirit and provision of CSR is different under the Companies Act 2013. This is for organizations that provide services. I think this year, there has definitely been a 40-50% reduction in funding. We are in a lot of trouble. We do not know how to deal with the situation because our funding and resources are absolutely tied.
In a survey of Ashoka University, the head of 50 NGOs was talked about in April-May 2020. According to the report-
“NGOs dependent on CSR funding are facing challenges. Corporate funds are sending a large portion of the current CSR funding elsewhere for immediate relief operations, including the PM CARES fund. Apart from this, CSR budget will also be greatly reduced due to lower financial profits in the coming days. ”
Three children of Devi who work in Prayas come for tuition in Prayas. Devi has no work because of the epidemic. Like Goddess, there are many people there. He hopes that the NGO will help him like the effort.
In view of the shortage of funds, efforts and other NGOs are looking for another way to continue their projects. Vishwajit Ghoshal says, “We need to explore other areas of fund and resource mobilization so that our programs can continue.” We are going to the members of our governing board and getting their support. We are contacting each other as every person, well-wisher, supporter, because now every penny matters and every penny has value for us. ”